Coinbase continues push to compel SEC to act on crypto rulemaking petition

The SEC submitted a long-awaited status upgrade on Oct. 12, slightly stating that “commission staff provided a suggestion” to the SEC over Coinbases petition, however did not divulge any additional details. In an Oct. 13 X post, Coinbases Chief Legal Officer Paul Grewal slammed the SEC for dragging its heels, as he called for a mandamus to require the SEC into effectively detailing its intentions.Weve filed our action with the Third Circuit. After the SEC failed to react, Coinbase submitted a petition for mandamus nine months later, seeking the court to oblige the SEC to offer a “yes or no” response.

Coinbase has actually doubled down on its push for a court order compelling the U.S. Securities and Exchange Commission to act on the firms crypto rulemaking petition. Coinbase desires a mandamus issued within 30 days to compel the SEC to provide a main response on whether it will accept or reject the petition. The SEC submitted a long-awaited status upgrade on Oct. 12, slightly stating that “commission personnel offered a recommendation” to the SEC over Coinbases petition, but did not disclose any further information. In an Oct. 13 X post, Coinbases Chief Legal Officer Paul Grewal slammed the SEC for dragging its heels, as he called for a mandamus to force the SEC into properly detailing its intentions.Weve filed our reaction with the Third Circuit. Tl; dr: the SECs unilluminating “update” is mere governmental pantomime and verifies that nothing except mandamus will prompt the agency to take its commitments seriously. 1/3 https://t.co/DC1o8EflcH— paulgrewal.eth (@iampaulgrewal) October 14, 2023

Grewal also shared Coinbases response to the SEC update that it filed with the Court of Appeals for the Third Circuit. “The SECs unilluminating report is simple bureaucratic pantomime and validates that nothing except mandamus will prompt the agency to take its obligations seriously. It took more than a year and an order from this Court to generate even a staff-level suggestion,” the response checks out, including that: “The Commission has fixed not to carry out the rulemaking Coinbase asked for, and it will make use of every administrative artifice in its arsenal to prevent judicial review so long as the Court permits it.” Coinbases response to the SEC upgrade. Source: Paul Grewal on X. Coinbase initially submitted the rulemaking petition in July 2022, requesting the SEC to “propose and adopt guidelines” to govern the crypto market, consisting of potential rules to clearly detail which digital assets fall under the definition of securities. After the SEC stopped working to respond, Coinbase submitted a petition for mandamus 9 months later, seeking the court to compel the SEC to offer a “yes or no” answer. Related: Coinbase spot trading volume falls by 52% compared to 2022: ReportHowever, the SEC has actually fired back on numerous events, refuting the need to meet Coinbases requirements while likewise asking the court to reject Coinbases petition for mandamus. In mid June, the SEC then asked the court for an additional 120 days to react to the rulemaking petition. Such a timeline recommends that the company might have an answer by the end of October or early November. Publication: How to protect your crypto in a volatile market– Bitcoin OGs and professionals weigh in

Other Questions People Ask

What are the key developments in Coinbase's push to compel the SEC to act on its crypto rulemaking petition?

Coinbase has intensified its efforts to compel the SEC to respond to its crypto rulemaking petition, which was initially submitted in July 2022. Following a lack of response from the SEC, Coinbase filed a petition for mandamus, seeking a definitive "yes or no" answer regarding its request for regulatory guidelines. The SEC's recent status update on October 12 provided minimal information, prompting Coinbase's Chief Legal Officer to criticize the agency for its slow progress.

How has Coinbase responded to the SEC's lack of action on its rulemaking petition?

In response to the SEC's delayed action, Coinbase has filed a petition for mandamus with the Third Circuit, demanding that the SEC provide a clear response to its rulemaking petition. Coinbase's Chief Legal Officer, Paul Grewal, has publicly condemned the SEC's update as bureaucratic and uninformative, asserting that only a mandamus will compel the agency to fulfill its obligations. This response underscores Coinbase's frustration with the SEC's handling of the situation and its determination to seek judicial intervention.

What implications does Coinbase's push for a mandamus have on the SEC's regulatory approach?

Coinbase's push for a mandamus could significantly impact the SEC's regulatory approach by forcing the agency to clarify its stance on crypto regulations. If the court grants Coinbase's request, it may set a precedent for how regulatory bodies respond to petitions and could expedite the rulemaking process for digital assets. This situation highlights the tension between cryptocurrency firms and regulatory agencies, emphasizing the need for clearer guidelines in the evolving crypto landscape.

What timeline is expected for the SEC's response to Coinbase's crypto rulemaking petition?

The SEC has indicated that it may provide a response to Coinbase's rulemaking petition by the end of October or early November, following its request for an additional 120 days to react. This timeline suggests that Coinbase could soon receive clarity on whether the SEC will accept or reject its proposed guidelines for regulating digital assets. However, given the ongoing legal actions and Coinbase's push for a mandamus, the situation remains fluid and subject to change.